Recent Price Movements and Market Context
On 8 December 2025, Naksh Precious Metals recorded its lowest-ever trading price at ₹5.04. This level represents a continuation of a downward trajectory, with the stock having declined over the past three consecutive sessions, resulting in a cumulative return of -2.62% during this period. Despite a positive one-day price change of 4.33%, the stock underperformed its sector by 1.58% on the same day.
The stock’s position relative to its moving averages further illustrates the prevailing trend. Naksh Precious Metals is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling persistent weakness across short, medium, and long-term timeframes.
Comparing Naksh Precious Metals’ performance against the Sensex highlights the extent of its challenges. Over the last one month, the stock’s return stands at -10.06%, contrasting with the Sensex’s positive 2.81%. The divergence widens over longer periods: a three-month return of -15.42% versus Sensex’s 5.90%, and a one-year return of -42.47% compared to the Sensex’s 4.70%. Year-to-date figures show Naksh Precious Metals at -50.09%, while the Sensex has gained 9.49%.
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Long-Term Performance and Valuation Metrics
Over extended periods, Naksh Precious Metals has exhibited considerable underperformance relative to the benchmark indices. The stock’s three-year return is -71.07%, while the Sensex has recorded a gain of 36.73%. Over five years, the stock’s return is -73.37%, contrasting with the Sensex’s 87.58%. Even on a ten-year horizon, Naksh Precious Metals shows a negative return of -66.28%, whereas the Sensex has surged by 238.01%.
From a valuation standpoint, the company’s price-to-book value stands at 0.8, indicating that the stock is trading at a discount relative to its book value. This valuation is comparatively lower than the average historical valuations of its peers within the automobile sector.
The company’s return on equity (ROE) averages 3.07% over the long term, reflecting modest profitability relative to shareholder equity. The ROE for the most recent period is 5.6%, which aligns with a fair valuation level. Operating profit growth over the past five years has been recorded at an annual rate of 13.85%, suggesting limited expansion in core earnings.
Profitability and Debt Servicing Capacity
Recent quarterly results reveal subdued earnings performance. The Profit Before Depreciation, Interest, and Taxes (PBDIT) for the quarter stood at ₹0.01 crore, while Profit Before Tax excluding other income was effectively nil. These figures represent some of the lowest levels reported by the company in recent periods.
The company’s ability to service its debt is constrained, as indicated by an average EBIT to interest ratio of 0.12. This ratio suggests that earnings before interest and taxes are insufficient to comfortably cover interest expenses, which may have implications for financial stability.
Shareholding Pattern and Market Capitalisation
Majority ownership of Naksh Precious Metals rests with non-institutional shareholders. The company’s market capitalisation grade is rated at 4, reflecting its size relative to other listed entities in the automobile sector.
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Comparative Returns and Sector Context
When benchmarked against the BSE500 index, Naksh Precious Metals has consistently underperformed over the last three years. The stock’s one-year return of -42.47% contrasts with the broader market’s positive returns. This pattern of underperformance extends across multiple annual periods, underscoring the challenges faced by the company within the automobile sector.
Despite the negative returns, the company’s profits have shown a 7% rise over the past year. The price/earnings to growth (PEG) ratio stands at 0.7, which may indicate that the stock’s price reflects expectations of modest growth relative to earnings.
Summary of Key Financial Indicators
The following points encapsulate the critical financial metrics for Naksh Precious Metals:
- All-time low stock price of ₹5.04 as of 8 December 2025
- Negative returns across multiple timeframes: -10.06% (1 month), -15.42% (3 months), -42.47% (1 year), -50.09% (year-to-date)
- Trading below all major moving averages (5, 20, 50, 100, 200 days)
- Average ROE of 3.07% with recent quarter ROE at 5.6%
- Operating profit growth at 13.85% annually over five years
- EBIT to interest ratio averaging 0.12, indicating limited debt servicing capacity
- Market capitalisation grade of 4 and majority non-institutional ownership
The stock’s trajectory and financial indicators reflect a complex situation within the automobile sector, with Naksh Precious Metals facing considerable headwinds in both market performance and profitability metrics.
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